Detailed assessment: Secretary for Transport & Housing Eva Cheng says the Government will conduct a review on the outlying island ferry services as soon as possible.

Licences of four outlying island ferry routes - between Central and Mui Wo, Peng Chau, Yung Shue Wan and Sok Kwu Wan - have been awarded, Secretary for Transport & Housing Eva Cheng says.

Speaking to reporters this afternoon, Ms Cheng said the new licences will take effect on July 1, adding the average fare-increase rates of the licences awarded range from 5.5% to 23%, while the increase rates of monthly tickets range from 5% to 16.9%. For details, click here.

After a thorough assessment of these bids, the Transport Department awarded the licence for the Central-Mui Wo route to New World First Ferry Services Limited, Central-Peng Chau route to Hong Kong & Kowloon Ferry Limited, Central-Yung Shue Wan route to Islands Ferry Company Limited, and Central-Sok Kwu Wan route to Winnertex Limited.

Alleviation measures

To help alleviate the pressure on the ferry operation during the effective period of the new licences to maintain fare stability as far as possible, the Government will:

* waive the vessel-related fees of these four routes;

* reduce or waive the pier cleaning, water and electricity expenses; and

* provide more assistance to the operators on a reimbursement basis on top of the waiving of pier rentals and vessel licence fees under the current Elderly Concessionary Fares Scheme, during the new licence period of three years from July 1.

The implementation of these additional relief measures for these four routes is expected to cost about $6 million a year.

Ms Cheng said about 40% of Mui Wo, Peng Chau and Lamma Island residents come to the urban area for work or school every day and must interchange to the MTR after taking a ferry to Central.

To encourage passengers to interchange to MTR, the MTR Corporation has agreed to offer a fare concession of $1.50 per trip, lasting for six months, to passengers using these four ferry routes and interchanging to MTR.

Free tickets scheme

To maintain the continuing development of the tourism and economic activities on these outlying islands despite the rising fares for ferry services, the Government will launch a one-off $2 million scheme, providing free ferry tickets to encourage schools, non-governmental organisations and community and district groups to organise activities to Peng Chau, Mui Wo and Lamma Island.

Organisations may submit applications to the Government. After vetting, the Government will reimburse the ticket fees to the organisations.

The Transport Department will form an inter-departmental working group to map out the detailed arrangements. The scheme is expected to start to receive applications during the summer vacation.

Long-term review

Ms Cheng said the Government will conduct a review on the outlying island ferry services as soon as possible, with a view to enhancing the long-term financial viability of these services and maintaining fare stability.

The Government is studying the addition of a floor at Central Piers Nos. 4 to 6, and beautifying these piers which are located at prime sites along the harbourfront. Ferry operators would be allowed to use the extra floor for commercial or retail activities to generate more non-fare revenue, to cross-subsidise the ferry operation and enhance the long-term financial viability of the outlying island ferry services. 

Should this plan be implemented, the Government will bear the construction cost of the relevant works.